Are VC companies investing a lot in green businesses?

Answers

Computer chip company, Intel, announced a $3.5billion in partnership with several venture capital firms to fund technology research that could end up funding green initiatives. The link at the bottom provides a list of venture capital firms that specialize in funding green minded start-ups. I can’t really answer whether or not they are investing a lot or a little, but some investment is happening.

Most of the barriers to greater investment in green companies/products/etc seem to stem from the prevailing wisdom that the markets for green products are still relatively small. This is most likely due to the fact that many non-green ways of doing things (fueling cars with gasoline for example) remain cheaper and more accessible than their green counterparts.

Khosla Ventures has also become one of the top venture capital firms investing in clean technology. Putting money into more than 70 companies, Ford Tamer, operating partner in Khosla Ventures along with Vinod Khosla, is mostly looking at mechanical and electrical efficiency, solar energy and information technology services. Venture capital firms such as Khosla Ventures have invested $2.6 billion in the sector; many others are following right behind them.